Which of the following statements is true when referring to fixed costs?
Fixed costs increase in total throughout the relevant range.
As volume increases, unit fixed cost and total fixed cost will change.
Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.
Committed fixed costs arise from the annual decisions by management.
Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.
Fixed costs remain constant in total throughout the relevant range.
The Option C is correct.
Which of the following statements is true when referring to fixed costs? Fixed costs increase in...
7.Which of the following statements is true when referring to fixed costs? Multiple Choice Fixed costs increase in total throughout the relevant range. Committed fixed costs arise from the annual decisions by management. As volume increases, unit fixed cost and total fixed cost will change. Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company. 8 .Which of the following is an example of a period cost...
Which of the following statements is false with respect to committed fixed costs? Multiple Choice They represent organizational investments with a multiyear planning horizon. They should not be reduced for short periods of time because the costs of restoring them later would most likely exceed any cost savings realized in the short term. They usually arise from annual decisions by management to spend on certain fixed cost items. They remain constant, in total, regardless of changes in the level of...
Which of the following is correct with regard to discretionary fixed costs? A.Discretionary cost activities typically include lease rentals, property taxes, and depreciation. B.All of the choices are true regarding discretionary fixed costs. C,Discretionary cost activities are normally dictated by long-run management decisions D.. Discretionary cost activities are usually service oriented.
Which of the following statements regarding fixed costs is true? a. expressing fixed costs on a per-unit basis usually is the best approach for decision-making b. fixed costs expressed on a per-unit basis will remain constant as production increases c. assumptions regarding the behaviour of fixed costs rest heavily on the concept of the relevant range
Which one of the following statements about cost behaviour is true? Select one: Fixed costs per unit vary with the level of activity. Variable costs per unit are not constant within the relevant range. Total fixed costs are not constant within the relevant range. Total variable costs are constant within the relevant range. Pizza Paradise makes and sells only one kind of Pizza; Hawaiian Pizza, which is made with a key ingredient, Pineapple slices. Classify the Pineapple slices used in...
Which of the following statements regarding fixed costs is incorrect? Total fixed costs are constant within the relevant range. Fixed costs expressed on a per unit basis will decrease with increases in activity. Fixed costs expressed on a per unit basis will increase with decreases in activity. Expressing fixed costs on a per unit basis usually is the best approach for decision making.
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost. The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs. At the breakeven point, total sales revenue equals total costs. If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant.
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant ОО At the breakeven point total sales revenue equals total costs
Which of the following is a correct statement about fixed costs? Fixed costs will increase as output increases. If the firm does not produce, fixed costs will be equal to zero Fixed costs are only one-time costs of starting a business. If a firm's fixed cost is $10,000, that will be the same whether it produces 10 units or 100 units Which of the following is a correct statement about variable costs? If the firm does not produce, variable costs...
12. Costs that change abruptby at intervals of activity because the resources and their cost come D. Step costs t.3. Which of the following terms appears on an income statement prepared using the approach but not on an income statement using absorption costing: ing income B. Gross profit C. Contribution margin D. Sales 14. Activities that affect costs are often called A. Cost drivers B. Stages of production C. Fixed activities D. Variable activities 15. At an activity level of...